The world of DeFi is still recovering from the shock of China’s crackdown on crypto, but not everyone agrees with their philosophy. It should not come as a surprise that China would crack down on a currency over which they have little control. It is not game over for crypto, and the Philippines has now rolled out the welcome mat for crypto on its stock exchange.
Philippines Stock Exchange Welcomes Crypto
When authorities in Sichuan, China, ordered miners to shut down their operations and told banks not to provide services related to crypto, many thought that it was all over. There is no denying the magnitude and effect of China’s decision regarding cryptocurrency, but they do not speak for the rest of the world. The Philippines recently announced that it plans to allow trading crypto on its stock exchange.
At present, the introduction of crypto to the Philippines Stock Exchange is not ready to roll just yet. It is awaiting the finalization of guidelines from the Philippine Securities and Exchange Commission (SEC). The Philippine SEC has had plans in the making to add crypto to its exchanges since 2019, when it began seeking commentary from investors, banks, and the general public.
Crypto in the Philippines
The Philippine Stock Exchange plans to offer crypto trading in the near future, but they are not planning to offer digital currency through the central bank. Currently, the Philippines has 48 exchanges where you can buy and sell crypto. Only 11 of them are registered with the Central Bank. Others are licensed by the Cagayan Economic Zone Authority (CEZA).
Filipinos Love Crypto
The Philippines is one of the earliest and fastest adopters of crypto. This rise in interest among the population fueled a rapid rise in crypto ATMs and gaming rewards using crypto. The government is ahead of many countries in the development of regulations to facilitate the adoption of crypto.
The Philippines is among one of the top ten economies in Asia, but the pandemic has taken a toll, just as it has everywhere else in the world. The struggling economy is one of the factors fueling crypto acceptance by the people. They see it as a way to make ends meet and build wealth.
In an interview with CNN, Ramon Monzon, PSE President and CEO, said that the volatility of crypto is one of the things that makes it so attractive to many. Filipinos like to play games on their phone, like “Axie Infinity,” as a way to earn extra crypto. This is especially popular in rural communities. This game is a free market simulator where you can buy, sell, and rent properties using non-fungible tokens (NFTs). Some families have even made this their full-time job to survive.
Still in Infancy
The Philippines still has many of the same concerns as other countries when it comes to crypto adoption. They recently put regulations in place to prevent money laundering using crypto. There is also a concern that people will only see the upside of crypto with surging prices and will fail to see the downside risk.
While many countries around the world are struggling with infrastructure and the regulations necessary to grow crypto, the Philippines is showing them how to do it. Crypto is still in its infancy, even in the Philippines, but the public acceptance of it is driving the need to get the infrastructure in place to set the stage for growth.
The actions of China sent shocks through the world, but crypto investors need to keep an eye on markets like the Philippines, where it is picking up steam quickly. This latest news is good news for DeFi in a time when many could use it. Even if the big players do not completely support blockchain yet, countries like the Philippines will pave the way.